(Hayward, CA) – Buffalo Bill’s Brewery issued a recall today for Buffalo Bill’s Orange Blossom Cream Ale sold in six-pack bottles.
The recalled product was shipped between January and July 2011. The company has issued a nationwide recall for all Buffalo Bill’s Brewery Orange Blossom Cream Ale.
The product is being recalled because contents of several bottles have been found to be fermenting, which causes additional pressure in the bottle. This may lead to sudden popping of the cap or rupturing of the bottle, which could pose a hazard from breaking glass. Immediate and careful disposal of the product is warranted. People who have already consumed the product are not at risk of illness or bad effects. Consumers may receive a full refund for any unused product by calling toll free at 1-(855)-890-3290.
Buffalo Bill’s Brewery has taken corrective action to prevent future occurrences. The recall does not affect other bottled or draft products from Buffalo Bill’s Brewery. For more information, please call 1-(855)-890-3290.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
(Hayward, CA) – Buffalo Bill’s Brewery issued a recall today for Buffalo Bill’s Orange Blossom Cream Ale sold in six-pack bottles.
The recalled product was shipped between January and July 2011. The company has issued a nationwide recall for all Buffalo Bill’s Brewery Orange Blossom Cream Ale.
The product is being recalled because contents of several bottles have been found to be fermenting, which causes additional pressure in the bottle. This may lead to sudden popping of the cap or rupturing of the bottle, which could pose a hazard from breaking glass. Immediate and careful disposal of the product is warranted. People who have already consumed the product are not at risk of illness or bad effects. Consumers may receive a full refund for any unused product by calling toll free at 1-(855)-890-3290.
Buffalo Bill’s Brewery has taken corrective action to prevent future occurrences. The recall does not affect other bottled or draft products from Buffalo Bill’s Brewery. For more information, please call 1-(855)-890-3290.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
(Portland, OR) – Profit was up big for Craft Brewers Alliance in the second quarter with the sale of its hefty stake in Goose Island but the real story is always in the barrels. Let us take a closer look…
Total shipments topped 191k barrels for the second quarter, up nearly 12% from the second quarter of 2010.
Remember when I hinted that Kona Brewingmay actually passRedHook Brewery as the second largest CBA member this year?
Well, it’s already happened. Through the first half, Kona shipped 90.6k barrels of beer to 89.5k Redhook’s barrels. Kona shipments grew 35% in the 2nd quarter and have grown 41% for the year so far. The majority of that growth is coming on the off-premise side.
Kona may even win the race to be the next small brewer to hit 200k barrels, passing Bell’s, Harpoon and Boulevard who were each around 150k barrels produced in 2010.
Solid all around for Kona once again…
How about the other two members of the Craft Brewers Alliance? The first quarter that we’d see some results from the mega re-branding efforts that launched early this past spring…
RedHook had an improved quarter, up 4.4%. Widmer Brothers was down 5.1%.
Off-premise growth for both breweries was steady, if not improved in the case of RedHook, but draft sales are declining. Widmer draft sales alarmingly sank 11% to just over 33,000 barrels. Recall that Widmer Brothers was a draft-only brewery through 1995. Draft sales are down to their lowest mark for Widmer Brothers since 1992 when it produced just shy of 30,000 barrels (Modern Brewery Age Year-in-Review 1993). Almost two decades.
All in all, some troubling numbers considering selling, general and administrative expenses rose 41% for the quarter.
On the bright side, CBA did trim cost of sales by nearly 5%.
As far as individual brands go, some recent Symphony IRI data (courtesy of Modern Brewery Age) breaks things down even a bit further.
Year-to-date through June 12, Kona Longboard Lager emerged as one of the nation’s top 100 brands in the food channel with 53% growth. Long Hammer IPA has been doing well for RedHook, up 5% in the same channel. On the flip side, sales of Widmer Brothers’ flagship brand, Hefeweizen, are down nearly 8% across all channels for the four weeks ending July 10.
The next plotline? It is not a matter of if but when does Kona overtake Widmer Brothers as the largest member of the Craft Brewers Alliance. If these second quarter numbers are any indication, 2012 isn’t out of the realm of possibility.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
(Leuven, BELGIUM) – AB InBev has released its second quarter earnings results.
The full 25-page press release is available here (pdf). I’ve grabbed management’s comments on the U.S. market and pasted below…
• Volumes: Industry volumes in 2Q11 were impacted by poor weather, especially in the center of the country, and high gas prices. However, gas prices have moderated in recent weeks and the industry has benefited from good volumes during the Fourth of July holiday period, with IRI reporting industry beer volumes up 1.4% in the combined food/drug/mass/convenience channels in the four weeks ending 10 July. Own beer shipments in the quarter declined 1.7% and sales-to-retailers (STRs) fell 3.4%, while in HY11 own beer shipments were down 2.5% with STRs declining 2.9%
• Bud Light growth: Bud Light gained market share in 2Q11 and HY11. Key brand health indicators continue to improve, and accelerated growth remains our number one priority in the United States. Share growth was supported by the “Here We Go” campaign, innovative packaging (“My Bud Light” label) and a strong digital program. Looking ahead, we are pleased that the NFL owners and players have reached an agreement for the coming season. Our plans are in place and we are excited by the first year of Bud Light sponsorship of the league
• Budweiser stabilization: As we have previously said, we are taking a systematic, long term approach to stabilizing the brand in the United States and are pleased to report that we continue making solid and steady progress:
• Share declines continue to decelerate. According to IRI grocery and convenience store data, Budweiser cut its market share decline to 0.3 pp for the month of June
2011 from 0.8 pp in June 2010, on a rolling 12 month basis. More significantly, Budweiser share has been flat on a rolling 12 month basis since January 2011
• Brand health continues to improve and in June 2011, Budweiser brand volumes grew in 23 of the 50 states. This resulted in the best half year volume performance for the brand in 11 years
These strong results have been driven by a series of initiatives which began in 3Q10, including, most recently, a system-wide execution focus from Memorial Day through the Fourth of July holiday. During this period, Budweiser’s innovative limited edition patriot can, “Here’s to the Heroes” Home Run Program and national happy hour on Flag Day (14 June) encouraged consumer sampling, awareness and re-connection with the brand, as well as raising funds for the Folds of Honor Foundation. Building upon this momentum, we have recently announced a new visual brand identity for Budweiser in the United States. This will include a packaging change for all cans, aluminum bottles and secondary packaging, although there will be no change to the iconic Budweiser glass bottle label
• High end growth: We are committed to driving aggressive growth in the high end, and have improved our share of this segment by 100 bp since December 2010, adding over a quarter million additional points of distribution during this period. Our high end shipment volumes increased 19.5% in 2Q11 and 19.8% in HY11. STRs were up 18.7% in 2Q11 and 16.5% in HY11. All of our major brands in this segment saw growth in HY11, with Stella
Artois and Shock Top continuing to lead the way with STRs increasing 22.0% and 76.5%,
respectively. In addition, we are encouraged by the Goose Island integration process and the valuable insights we are gaining into this highly profitable segment
• Revenue management: We are committed to improving our brand mix and remain disciplined in implementing our strategy to narrow the price gap between our sub-premium and premium brands which we started in 4Q10. Beer-only revenue per hl grew 3.6% in HY11, with brand mix benefiting the result by 49 bp
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
UPDATE II: According to Brewbound‘s Chris Furnari, the cost difference between the two licenses is nearly $4,500.
The Alcoholic Beverages Control Commission (“the Commission”) endeavors to support and enhance the agricultural community, ensure the long-term viability of agriculture, and support farms that protect the common good in many ways including maintaining open spaces in communities. Through the issuance of Farmer-Brewery licenses, the Commission proudly encourages the development of domestic farming and the people who help it thrive.
Each Farmer-Brewer license exists for the specific public purpose of “encouraging the development of domestic farms.” To advance this public purpose, the law requires that a Farmer-Brewer grow cereal grains or hops for the purpose of producing malt beverages. While a licensed Farmer Brewer may import malt, cereal grains fermentable, sugars and hops, this does not eliminate the basic growing requirement. The Commission recently issued a decision relative to Farmer-Brewery licenses. A Farmer-Brewer is any person who grows cereal grains or hops for the purpose of producing malt beverages and who is licensed to operate a Farmer-Brewery.
In its decision, the Commission held that each applicant for a Farmer-Brewery license must document that it grows cereal grains or hops of at least 50%, in the aggregate, of the quantity of cereal grains and hops needed to produce the gallonage of malt beverages estimated to be produced by the applicant during the license term. The Commission also held that when that applicant contracts exclusively for the rights to the yield of cereal grains or hops produced from acreage of domestic farmland that applicant will also be considered to grow “cereal grains or hops for the purpose of producing malt beverages” as required by this law.
For example, if an applicant estimates it will produce “X” barrels of malt beverages in calendar year 2012, and that to produce this volume of malt beverages it will require 200 bushels of cereal grains and 4 bushels of hops, the applicant is required to produce evidence that it grows at least 102 bushels of cereal grains and/or hops used to produce the malt beverages, or that the applicant has exclusive contracts rights to the yield of cereal grains or hops produced from acreage of domestic farmland, or some combination thereof that reaches the “at least 50%” required amount.
The decision dictates compliance with the letter as well as the spirit of Massachusetts General Laws chapter 138, §19C. The Commission put the industry on notice that it will apply this ruling prospectively and, specifically, during the next annual renewal cycle to ensure that every applicant for a Farmer-Brewer license meets the state law definition of farmer-brewer.
Moreover, applicants that do not meet the criteria for a Farmer-Brewer license are welcome to apply for a manufacturer’s license. If you have questions concerning this Advisory or would like more information, please call Executive Director Ralph Sacramone at 617-727-3040.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
UPDATE I: Here is Massachusetts’ official advisory that the press release below references.
UPDATE II: According to Brewbound‘s Chris Furnari, the cost difference between the two licenses is nearly $4,500.
(Everett, MA) – Idle Hands Craft Ales LLC announced that the Massachusetts Alcoholic Beverages Control Commission (ABCC) denied the brewery’s Commonwealth of Massachusetts Farmer-Brewery license, a move that could have wide-spread implications for the brewing industry in the state.
According to the ABCC, to qualify for the Farmer-Brewery license, a farmer-brewer must “grow at least 50 percent, in the aggregate, of the quantity of cereal grains and hops needed to produce the anticipated volume of malt beverages.” Idle Hands has conceded to this decision as their plans to farm, while in support of domestic agriculture and in line with the spirit of the Section 19C licensing guidelines, will not meet this newly specified 50 percent threshold.
This decision redefines a long-standing license that a vast majority of production breweries in the state hold. The ABCC explicitly stated in its decision to Idle Hands that, “the industry is put on notice that the Commission will be applying this ruling prospectively and, specifically, during the next annual renewal cycle to ensure that every applicant for a farmer-brewer license meets the state law definition of farmer-brewer by growing at least 50 percent…” Given the ABCC’s statement, all farmer-brewery licenses will come under the same scrutiny during the renewal time period (effective fall 2011 for 2012 licenses).
“While we are in the process of re-evaluating our business plan for the brewery, we are equally concerned with the potentially devastating financial impact this decision has on the entire brewing industry in the Commonwealth of Massachusetts,” said Chris Tkach, founder and head brewer of Idle Hands.
“A decision by the ABCC to force our farm to grow and malt grain will put our farm, and any farmer in the Commonwealth, out of the farm-brewing business,” said Bill Russell of Just Beer @ Buzzards Bay Brewing in Westport, MA.
If Massachusetts state breweries are unable to meet the 50 percent hurdle of the Farmer-Brewery license, they will need to acquire the only alternative, a Manufacturer of Wine and Malt Beverages License. The Manufacturer license, however, does not allow breweries to sell beer at retail or do tastings on site – one of the unique draws of the burgeoning craft beer market. It also forces breweries to utilize wholesale distribution channels which will result in potentially lower margins for the brewery (or higher costs to the consumer) and limited product distribution. Many small breweries rely on already tight margins and self-distribution in order to survive in an industry that favors more established and larger players.
Though this decision helps clarify a license that has been on the book for years, it sets a precedent that creates far-reaching effects on breweries, bars, restaurants, retailers and ultimately consumers. There are cost implications and more important issues relate to economic growth, industry innovation, and consumer access to a greater variety of local beers. These effects are further amplified as the brewing industry is one of a few growing industries in an otherwise struggling economy. Existing breweries of all sizes will have to adapt to the 50 percent requirements or apply for alternate licensing, and local entrepreneurs will have to determine whether they can invest in an industry that no longer supports growth and innovation.
About Idle Hands Craft Ales
Founded in 2010, Idle Hands Craft Ales LLC is a privately owned, artisan nano-brewery based in Everett, Massachusetts. Husband and wife team, Chris and Grace Tkach, lovingly hand craft their food-friendly, Belgian-inspired beers in small batches for consumption in the local Boston market. Information about Idle Hands Craft Ales is available at http://www.idlehandscraftales.com
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
Minnesota is currently in day 13 of a statewide government shutdown after a budget proposal impasse.
According to local affiliate, KSTP, MillerCoors alleges that it submitted payment and paperwork for brand registration/renewal prior to the July 1st shutdown. However, the state did not process the paperwork in time so the company’s 39 brands are now on shelves without proper registration. The fee per brand is a mere $30 every three years.
According to reports, the brewing company must come up with a way to remove the product from shelves. Meanwhile, retailers are asserting that they own the product outright and that what was purchased while the brands were properly registered should not be affected. For now, it looks like MillerCoors cannot sell anymore product to its Minnesota wholesale partners until the government shutdown ends and the liquor board approves those brands for renewal. Whether product needs to be pulled should be known soon enough.
MillerCoors is obviously disputing it.
…But it gets worse.
Several hundred Minnesota liquor establishments were unable to renew their buyers’ cards meaning that they cannot order more liquor until the shutdown is over and agencies get back to issuing renewals.
Startup breweries like Steel Toe Brewing cannot open with the shutdown. Steel Toe needs a signature providing clearance for them to be able to use their boiler.
On a local but unrelated note, Lift Bridge Brewing is crying foul over Cold Spring Brewery not honoring its production contract. Cold Spring says that it gave Lift Bridge plenty of warning that it was facing capacity issues while Lift Bridge says that it got extremely short notice.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
…And now for a slight change of pace and some content that is a bit more behind the scenes and industry-related…
Bella Vista Beer Distributors has been around in Philadelphia for over 25 years. Brand Manager, Jordan Fetfatzes, answers a dozen questions on how one of the largest beer markets in the country works and what it’s like being the little guy among AB and MillerCoors distributors.
1) Give me the Bella Vista Beverage story in one paragraph. [or in Jordan's case, several...]
Bella Vista to Eastern Pennsylvania means an unabashedly and ferociously independent wholesaler who refuses to accept anything less than unbeatable service with great beer. Bella Vista Beer Distributors is a family run company built from the ground up in 1984 by Mario and Olimpia Fetfatzes that started out as a retail mom and pop operation. Over time, Bella Vista became a craft beer wholesaler due to three major reasons.
a) The current wholesale system was filled with holes regarding brands WE wanted to see in the market.
b) Our favorite and most recognized wholesaler had been bought out (Edward Friedland Co. We miss you!) and created a void in Philadelphia Proper for an Independent, craft-ONLY beer wholesaler.
c) Passion – the love of craft beer has led us down the path as a wholesaler for the world’s best brewers and importers.
Our first brand was Boulder Beer Co, and we have them to thank for us being in this game. It was down to the big Coors House or little ass Bella Vista Beer… four years later, we are Boulder Beer’s #5 wholesaler in the country out of over 30 markets covered by that brewer. We knew nothing about the wholesale aspect but, boy, did we learn fast!
Today Bella Vista is known nationally for having a truly highly regarded portfolio of beer from brewers and suppliers we call friends, share joy and tears with throughout the year. We bust on each other about sports and weather but we also feel their pain when we hear from them firsthand of devastating occurrences we see on TV. To have a familiar voice on the phone echoing what we just saw on the news in their area- fires, landslides, earthquakes- this craft beer business sure makes the world a much smaller place.
Bella Vista is the true David in a Goliath world of beer wholesale! We go out of our way to work with our brewer-friends. For example, we will grab cast iron tubs from North Philly for Sixpoint and get Apple Brandy barrels for the likes of Voodoo and Cigar City. Those are the things that makes Bella Vista who we are. We give a damn!
2) Pennsylvania is known to have some unusual liquor laws. Can you briefly describe how Bella Vista acts as both a wholesaler and a retailer and why that is?
Unusual? At least we don’t have crazy ABV caps or package size bans. However, we do have the case only law on the beer store front, and a maximum volume allowed sold by deli’s, bars, and restaurants.
As a wholesaler, imagine trying to get across to a potential supplier that what the mother carton looks like matters! They look at us like we have three heads sometimes. Then when we say, think of Pennsylvania with a bunch of mini Costcos or Sams Clubs. Then the light bulb goes on. “OH!!–then the puzzled response, “Really? you mean my beer will be sold in the original container it was packaged in? Even a case of 22oz Bombers?” That response never gets old, Then we get the, “Well how do you buy a single? And then we state, bottle shops, which are basically restaurants by definition that must have seating for 30 people and food ready for the same amount. They must then have an addition to their license which is primarily for consumption on premise first and foremost. All in all, it is confusing but it has worked for a long time. As far as we know, it won’t change any time soon. Hey, you out of state brewers eyeing up Pennsylvania, polish up that mother carton!
Another confusing word is “distributor.” In Pennsylvania, that is a catch-all phrase for both wholesaler and retail case stores. The only differentiation is whether or not they are an “ID” (importing distributor), a “D” (distributor) or BOTH! Many of us wholesalers in Pennsylvania are both, some only offering our brands at the retail venue and others offering beer they buy from other ID’s to bolster their overall selection. We are both an ID and a D.
Prior to the craft beer boom, there had always been some sort of movement to at least allow “D” distributors to sell 12-pks which has never come to fruition. Now with craft beer and smaller Pennsylvania brewers, the MBDA is making a push for 6-pack sales in the D’s so they can offer these products at a much more consumer-friendly and economically less-challenging package. We don’t have an opinion on the matter and all we can say to that is, “Whatever the law of PA is, is how we will run our business both as an ID and a D.” We do feel that some changes are needed to be more current with today’s way of life, both on the eating establishment licensee and the “D” level that is fair to both operations and works for the consumer. We all know that never ends up working.
3) Of the 100 or so beer brands in the Bella Vista portfolio, only five are based in Pennsylvania. What challenges come with carrying a largely non-local, niche portfolio filled with small breweries like AleSmith and Cigar City?
Hmmm…seems like you are asking us the hard questions!
Well, first off, we love our locals. We support them in our retail store. In fact, we have a PA-only designated aisle. We carry more local brands than most other local retailers believe it or not. If we didn’t, we wouldn’t be all that credible. Our retail floor manager makes an emphasis on weekly samplings of local beers, working closely with brewery reps from the likes of Victory, Stoudts and others to make sure that we show them the love they deserve.
The main reason we dont rep that many locals is simple; we got in the game a little later than most. The bigger locals had established their wholesaler partners a few years prior to us getting in the game but it is never too late to add local credibility to your repertoire, something which we are working on now. We signed with Jeremy Myers of up-and-coming Neshaminy Creek Brewing Co. out of Croyden (35 minutes from Philly!). Lavery out of Erie is an upstart but they make phenomenal beer and, in this crowded market, you better make good beer or you better get out of the way.
We have been approached by a few brewers in Pennsylvania that we’ve had to respectfully turn away due to our more discerning palates here at Bella Vista, and though they may not work for us, we wish them the most success and will help them by carrying their beer in our retail showroom. We also don’t leave them high and dry. We will usually send them a few more contacts for other wholesalers who may be interested in carrying their beer.
Some may call many of our brands niche, but we know other wholesalers would die to have the brands we have, and to be honest, there is a waiting list for lots of the niche beers, and allocations set forth for the brands like AleSmith and Cigar City. There just isn’t enough of this to go around, and we are happy they choose to send their beer to our region. Us being their voice, as an extended family member, is icing on the cake for us. Sometimes, we pinch ourselves when we start spouting off the brands we represent in one of the greatest beer centric regions of the world! Just an an FYI, if you pay attention to those beer rating websites, we distribute Voodoo Brewery, and Matt Allyn’s beers are some of the highest rated in all of Pennsylvania.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
(Madison, WI) – Today a bipartisan group of legislators led by Senators Glenn Grothman (R-West Bend) and Pam Galloway (R-Wausau) asked Governor Walker to veto a controversial provision in the state budget that restricts craft brewers’ ability to wholesale other brewers’ beer, own taverns, and creates uncertainty among contract brewers.
“Wisconsin is known for its breweries, and allowing small craft brewers to own their own taverns will highlight their product,” Grothman said. “This is the type of provision that should have been dealt with in a separate bill. It was complicated and the thriving craft brew industry did not participate in drafting this provision.”
“This sends the wrong message to nascent businesses like Big Bull Falls Brewery of Wausau in that it restricts possible avenues of growth. It was particularly disturbing in that it came out of the blue with no time for craft brewers to respond,” said Galloway.
Senator Robert Jauch (D-Poplar) stated: “As a member of the Joint Finance committee, I can assure the Governor we were not given adequate information before we were forced to vote on this provision.”
Representative Evan Wynn (R-Whitewater) said: “Small businesses are the leaders of Wisconsin’s economic recovery, and micro-breweries are no different. They employ many Wisconsinites directly, and many more through their purchase of quality Wisconsin ingredients. Wisconsin should be moving in a business-friendly direction and not legislating more needless government regulation.”
“I am concerned that at this time of economic uncertainty we are sending the wrong message to these small growing businesses,” Representative Brett Hulsey (D-Madison) added.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
(Woodridge, IL) – As pressure mounts, Pabst considers making changes to its new Blast by Colt 45 product line.
In late April, 19 Attorneys General collectively asked that Pabst stop selling that they referred to as “binge in a can.” The fruit-flavored malt beverage comes in at a weighty 12% ABV and is sold in 23.5 oz. cans. That is nearly 3x the alcoholic content as Bud Light and some of the nation’s other top sellers.
The other problem the AG saw was in the marketing which they alleged was aimed at underage drinkers. Snoop Dogg is the chief celebrity endorser of the products.
This past week, Pabst received label approval for new versions of the Blast by Colt 45 beverage line with one notable difference: the ABV. The ABVs shown on the new labels are 6%, 8% and 10%, indicating that the company is considering reformulating the controversial beverage. The company has not announced any final decisions on reformulation.
The Wall Street Journal reported in May that AB InBev was changing the alcohol content in Tilt, a Blast competitor, in order to enhance the brand’s public image. New cans of Tilt will contain only 8% ABV instead of 12% ABV sometime this summer.
[Disclaimer: Beernews.org is a leader in craft beer news and is the original source of this article. If you would like to check out more, please visit the original site. Thanks!]
